I have a special child aged 10 yrs, i have read somewhere that the FDs in the name of that child, the FD interest can be exempted from parents income, and the interest can be treated as their income and accounted in their IT. Is that so.

Ans: Interest income earned upto the date of death will form part of deceased income.

Interest income earned from date of death till maturity will form part of legal executor (separate PAN)

Ans: Hello Krishan,

Yes, the interest earned on Fixed Deposits (FDs) and savings accounts is indeed taxable. However, there are certain provisions in the Income Tax Act that provide some relief to senior citizens.

As per Section 80TTB of the Income Tax Act, senior citizens, those who are 60 years or above, can claim a deduction of up to Rs 50,000 from their gross total income. This deduction is applicable on the interest earned from FDs, savings accounts, and recurring deposits.

So, if the total interest income earned by a senior citizen in a financial year does not exceed Rs 50,000, then it will not be subject to tax. However, if the interest income exceeds Rs 50,000, then the amount over Rs 50,000 will be taxable.

I hope this clarifies your query.

Best Regards,
Hardik

Ans: No.

Ans: No. Such income cannot be clubbed with the income of her husband, since the amount was not transferred by her husband to her account.
Most welcome for any further clarifications. Thanks.